Singapore has overtaken San Francisco as the city with the highest concentration of rapidly expanding startups for the first time, according to the 2025 Hypergrowth Startup Index released today by HubSpot for Startups.
The annual report, produced in partnership with PitchBook, analyses the top 100 fastest-growing companies and unicorns. The findings indicate a significant evolution in the startup ecosystem, with sustainable business models and strategic partnerships now prioritised over unchecked rapid growth and massive funding rounds.
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The report reveals a notable shift in investment trends. While monthly deal counts have decreased by 50 per cent from 20,000 in 2021 to 10,000, the average deal size has increased by nearly 43 per cent, rising from US$35 million in 2023 to US$50 million in 2024. This suggests investors place greater emphasis on long-term viability rather than sheer scale.
Asia is becoming a central force in global innovation, with China’s emerging presence in Shanghai and Beijing alongside Singapore’s leading position. While other hubs like London continue demonstrating strong performance, the focus is shifting eastward.
Artificial intelligence (AI) is significantly reshaping the startup landscape, with a particular emphasis on sustainable growth strategies.
Interestingly, traditional sectors are exhibiting surprising strength in growth rates. The energy sector leads with a 37 per cent growth rate, slightly ahead of IT at 36 per cent and B2B companies at 35 per cent. Commercial services companies are also strong performers, with an average growth rate of 30 per cent.
“This data validates what we’ve been seeing across our startup ecosystem. Companies that focus on building strong customer relationships from day one are outperforming those that prioritise rapid scaling above all else,” said Laurence Butler, Head of HubSpot for Startups.
Strategic partnerships are proving to be highly valuable in the current market. Joint ventures are seeing average deal sizes of US$9.9 billion, four times larger than traditional buyout deals. Early-stage venture capital remains robust, accounting for 46 per cent of deals in the fastest-growing segment, with seed-stage deals maintaining stability at approximately 50 per month.
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Exit patterns are also evolving, with mergers and acquisitions dominating at 43 per cent, while initial public offerings (IPOs) represent only 6 per cent of recent exits. However, there was nearly a 50 per cent increase in IPOs between 2023 and 2024, hinting at a potential rebound in public markets.
HubSpot for Startups aims to support the next generation of successful companies by offering discounted software and resources. HubSpot Ventures has also invested in companies like Clay and G2.
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